EXPIRING MORATORIUM

Otago Witness, Issue 3672, 29 July 1924, Page 5

EXPIRING MORATORIUM

PROPOSED LEGISLATION. Reference to the moratorium was made in the Fnancial Statement by the Minister of Finance on Wednesday. Mr Massey said: The effects of tho post-war boom have not entirely disappeared. A number of people who bought land at prices beyond its value and left a very large proportion of the purchase money on mortgage find, now that prices of most of the primary products have fallen somewhat, serious difficulties in paying their way and making ends meet. The problem of enabling suoh people to regain their financial stability is one not easy of solution, though in many deserving cases where the mortgagor is ah industrious and energetic man, mortgagees have met the difficulty by accepting a share of the responsibility and writing off part of the indebtedness. This is the proper thing to do. Unfortunately, there are sometimes faults on both sides, and it becomes impossible to make any arrangement to which both parties will agree. The Government has assisted and will assist struggling settlers wherever it is possible to do so, but it cannot encourage breaches of agreements lawfully entered into. There is some satisfaction, however, in knowing that these difficulties are gradually adjusting themselves and that on the whole production is being well maintained. The Mortgages Extension Act will cease to operate on tho 31st uecember next. Linder this Act the mortgagee can apply to the Supreme Court for exemption from the restrictions on the enforcement of his rights, and the court, having considered the effect of continuance on the security, the ability or otherwise to redeem, and the question of hardship generally, is emempowered to grant relief under special circumstances.

The legislation just introduced will, if passed, have the effect of putting the law the other way about, so that the mortgagor may go to the Supreme Court, and, where he is able to prove to the satisfaction of the Judge in Chambers that actual hardship will otherwise ensue, the court will he empowered to rrant a limited extension. Otherwise the moratorium will be lifted as from the Ist January, 1925.